Gibraltar has said it will not be used as a bargaining chip in Brexit negotiations, after the EU declared that any decisions affecting the territory would need to be run past Spain.

The row escalated over the weekend when Michael Howard, the former Conservative leader said that Britain could effectively go to war over Gibraltar just as Margaret Thatcher did over the Fawklands 35 years ago.

Gibraltar's chief minister Fabian Picardo said that the message that 'we want to stay British' needs to be clear in every capital of the EU.

The Prime Minister, Theresa May has said the UK is 'committed' to the territory and that its sovereignty is not on the table.

Picardo said: 'Let us be very clear and let the message be clear in Madrid, in Brussels and in every other capital of the European Union. Gibraltar is not a bargaining chip in these negotiations. Gibraltar belongs to the Gibraltarians and we want to stay British.'

The EU guidelines followed May's letter last week formally triggering Brexit talks, which did not mention Gibraltar directly.

After May spoke to Picardo yesterday, Downing Street said: 'The prime minister said we will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes, nor will we ever enter into a process of sovereignty negotiations with which Gibraltar is not content. The prime minister said we remain absolutely dedicated to working with Gibraltar for the best possible outcome on Brexit and will continue to involve them fully in the process.'

Following Lord Howard's comments Nick Baines, the Bishop of Leeds wrote on his blog: 'So, the PM is prepared to go to war on Spain over the status of Gibraltar, is she?...We will fight for the rights and sovereignty of Gibraltar, will we? And what exactly is this to look like? The referendum result has dumped Gibraltar and the government now has to try to square a very round circle.'

Bishop Baines added that 'the challenge to Gibraltar seemed to me to focus on one of the major problems we face as we negotiate our departure from the European Union: realism. The government keeps issuing bland statements of optimism, but neglects to articulate clearly the fact that it has little or no control over delivery of a desired outcome.'

Lord Howard told Sky News yesterday: 'Thirty-five years ago this week, another woman prime minister sent a taskforce halfway across the world to defend the freedom of another small group of British people against another Spanish-speaking country, and I'm absolutely certain that our current prime minister will show the same resolve in standing by the people of Gibraltar.'

Responding, the Liberal Democrat leader Tim Farron, a Christian and Remain campaigner, said: 'It is unbelievable that within a week of triggering article 50 there are Conservatives already discussing potential wars with our European neighbours. In only a few days the Conservative right are turning long term allies into potential enemies. I hope this isn't a sign of the government's approach to the long negotiations to come.'

But Sir Michael Fallon, the Defence Secretary also used robust language. He told the BBC: 'We're going to look after Gibraltar. Gibraltar is going to be protected all the way because the sovereignty cannot be changed without the agreement of the people of Gibraltar.'